Qudsia Bano

Berger Paints Pakistan Limited’s revenue posted no significant growth in the first quarter of the ongoing financial year 2022-23 (1QFY23) compared to the corresponding period of the previous fiscal with sales stagnating at little over Rs1.5 billion. The company’s gross profit slightly decreased to Rs285 million in 1QFY23 from Rs287 million recorded in 1QFY22. However, the company sustained a steep fall in its profits, which were just Rs0.38 million in 1QFY23 compared to a strong profit of Rs35.87 million over the corresponding period of FY22, showing a massive negative growth of 99% year-on-year, reports WealthPK.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales edged up to Rs7.1 billion from Rs5.6 billion in FY21, posting a year-on-year increase of 26%.   The gross profit for FY22 also limped up to Rs1.2 billion from Rs1.1 billion in FY21, showing a negligible 9% growth. The profit-after-tax for the year increased only three percentage points to Rs201.8 million from Rs195 million in FY21.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales edged up to Rs7.1 billion from Rs5.6 billion in FY21, posting a year-on-year increase of 26%.   The gross profit for FY22 also limped up to Rs1.2 billion from Rs1.1 billion in FY21, showing a negligible 9% growth. The profit-after-tax for the year increased only three percentage points to Rs201.8 million from Rs195 million in FY21.

As of June 30, 2022, associated companies owned 53.06% of the company’s shares followed by local individuals from general public with 37.55%, insurance companies and ‘others’ 2.86% each, NIT and ICP 1.45%, banks, development financial institutions, and non-banking financial institutions 1.42%, respectively.

Earnings Per Share and Profitability

The EPS of the company showed positive growth during the recent years. In 2021, the EPS increased to Rs9.54 from Rs3.63 in 2020. The EPS further increased in 2022 to Rs9.87. Similarly, the net profit margin of the company also showed positive growth during the recent years. The net profit margin was 3.48% during 2021. However, it slightly decreased to 2.85% in 2022.

About the company

Berger Paints Pakistan Limited was incorporated on March 25, 1950 as a private limited company under the Companies Act, 1913 (now Companies Act, 2017). Subsequently, it was converted into a public limited company. The firm manufactures paints, varnishes and other related items. Slotrapid Limited, which is based in the British Virgin Islands, is the holding company of Berger Paints.

Credit : Independent News Pakistan-WealthPk